FTSE 100 Hits a New Record High

The Financial Times Stock Exchange (FTSE) set a record at 7458 on the morning of May 15, 2017.  The high was attributed to demand from the Chinese infrastructure as well as a rally in the price of oil.

The rise in the price of oil actually began when Russia and Saudi Arabia made a pact to keep easing up on the production of oil as far as into March 2018.  Various sources have posited that this is action has a goal of “stabilising the market.” In addition, mining companies’ shares have gone up at least in part because President Xi has made clear the plans to build connections throughout Asia of transportation links to the infrastructure.

In spite of those expressing concern that Brexit could cause problems in the Market, the FTSE 100 has shown an especially strong trend in the most recent months, largely because the pound is so much weaker thereby causing cheaper shares available to overseas buyers.

By far the greatest of the winners are Glencore and Antofagasta, the mining and commodities leaders that have relationships to oil.  They rose by 2.9 and 2.71 percent, respectively.  Rolls-Royce Holdings and Next both fell in excess of two percent, with TUI coming in at a 4.1 percent loss.  Royal Dutch Shell and BP, both oil concerns, saw a rise by 1.5 percent and 1.2 percent, respectively.

The FTSE 100 stayed on course to set a new high at its closing if not already, soon.  Interestingly, in recent transactions, 60 of the 100 companies have fallen but gains have been shown on a wave of the success of the indices overall.  The FTSE 250 has shown modest recent gains falling a bit short of its May 9, 2017, record of 19827.